Tesla posts record profit on EVs

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Correspondent’s report

Global fan factor in the automobile industry, Tesla, has declared significant revenue of $10.4 billion in the first quarter of the year, delivering a profit of $438 million profit.

The record profit amplifies astronomic demand shift from internal combustion vehicles for which the Tesla brand is popular to battery powered and electric motor propelled axles that is positioning the automobile industry for energy transition to cleaner energy.

Oracle Intelligence reports that the transportation sector is the world’s fuel consuming industry and the rising popularity of the electric vehicles also called EVs accelerates the demand shift to cleaner energy. The emerging energy demand scenario casts grim shadow for petroleum dependent economies like Nigeria which relies on oil and gas export for over 95 percent of the country’s balance of payments, 90 percent of its foreign exchange income and over 85 percent of total funding support for government’s annual revenues.

Tesla has revolutionalized the EV industry, spreading its production facilities to all continents of the world and propelling the global industry into new automobile power concept that has spawned ancillary industries in battery production and automobile charging facilities.

Following the fast growth and massive commercial returns that rescued Tesla from initial financial uncertainty to one of the world’s most valuable companies, traditional automobile industries in America, Europe and Asia are diverting investments into EV production plants.

European Union and Britain have set 2040 as deadline for total phase out of fuel fired combustion engines that currently drive majority of the vehicles on roads today. The government regulations which find support in the global endorsement of the Paris Agreement on climate change have sparked demand for EVs as charging facilities evolve in cities to compete with fuel retail stations. It however takes longer time to charge a vehicle than to fill a tank even with the evolution of fast charging technology.

In maintaining a strong position in the front EV front line, Tesla posted a first quarter profit of $438 million, a new altitude in its financial fortunes.

Celebrity CEO of the tech company, Mr Elon Musk stated that Tesla has seen a real shift in customer perception of electric vehicles, adding that demand for its products in the quarter is the best the company has ever seen.”

Elon Musk said on an investor call that Tesla’s vehicle sales doubled from the same quarter a year earlier.

Industry analysts stated that Tesla’s record quarterly profit despite supply disruptions was fueled by rising deliveries and increasingly broad-based demand for electric vehicles.

The Silicon Valley car maker has enjoyed booming sales, driven by both its popular Model Y compact sport-utility vehicle and sustained demand in China. The company also has benefited from the wider embrace of plug-in cars as governments across the world push to phase out gasoline-powered vehicles, in some cases through subsidies.

The company’s first quarter revenue jumped around 74% from the same period a year earlier to $10.4 billion.